if you have $1,000 in EUR/USD and gain 100 pips, what would your ROI be?

T

teh pk sh0w

Junior member
Messages
10
Likes
0
If you invest $1,000 of USD/EUR at 1.4510 (for example) and it increases by 100 pips, what would your ROI be?

Please show me how you came up with your answers please:)
 
Well I think you seem to want a bit too much spoon feeding to be honest. Surely the better approach would be to have a go at the calculation yourself first and see if you can do it. Then google for the methodology (believe me, there are tons of sites out there where people have already typed this stuff). THEN, if you're still stuck here, ask for help in a more specific way.

That's why people aren't amenable to your questions imho - you just want everything handed to you by the looks of things. This is a 15 second calculation and you still can't be bothered.
 
teh pk sh0w said:
If you invest $1,000 of USD/EUR at 1.4510 (for example) and it increases by 100 pips, what would your ROI be?

Please show me how you came up with your answers please:)
Click to expand...

You really aren't giving enough information.

Firstly are you using any leverage?
If so are you using the full $1,000 on the one trade.

If for example you are using no leverage and investing the full amount then it goes (assuming the buy) 100 pips is equal to 1c

$1000/1.4510*(1.4510+0.01) = $1006.89 or $6.89 dollars profit

If you use a traditional risk management method and leverage.

((Fund * risk)/stops)*pips

so if you are prepared to risk 1% of your fund on the trade and have a 20 pip stop

(($1000*1%)/20)*100 = $50
 
Last edited:
Igat said:
You really aren't giving enough information.

Firstly are you using any leverage?
If so are you using the full $1,000 on the one trade.

If for example you are using no leverage and investing the full amount then it goes (assuming the buy) 100 pips is equal to 1c

$1000/1.4510*(1.4510+0.01) = $6.89

If you use a traditional risk management method and leverage.

((Fund * risk)/stops)*pips

so if you are prepared to risk 1% of your fund on the trade and have a 20 pip stop

(($1000*1%)/20)*100 = $50
Click to expand...

where u get 6 bucks from? its 10..
 
Genics said:
where u get 6 bucks from? its 10..
Click to expand...

As the poster was not clear as to how the $1000 was to be invested I gave them a leveraged and an unleveraged example.

The unleveraged example was as the poster started with dollars the assumption was he was buying Euros using no leverage.

The 1000 dollars would get him at a rate of 1.4510 (as the Euro is the primary of the pair) 689.17988 Euros. Then should the rate go up 100 pips which as we know in this case is 1 cent and he bought back dollars at a rate of 1.4610 then he would receive $1006.8918 back.

I am not sure how you got your $10 figure to be honest unless you knew the OP was trading using leverage and at $0.10 a pip.
 
While we're on the subject of forex can someone explain something to me? I was short cable a few days ago on IG Markets during a period of v low movement expecting a drop in price. The price moved 10 pips offside from entry my short and I was down by £11.60. When it moved 10 pips into profit was £1.16 in profit. Wtf is that about. What am I overlooking?
 
Aaronmalins said:
While we're on the subject of forex can someone explain something to me? I was short cable a few days ago on IG Markets during a period of v low movement expecting a drop in price. The price moved 10 pips offside from entry my short and I was down by £11.60. When it moved 10 pips into profit was £1.16 in profit. Wtf is that about. What am I overlooking?
Click to expand...

Sounds a bit crazy even if your figures dont account for the spread.
 
They did account for the spread. The position was 1.16 contracts mini cfd by the way if you're wondering about the odd amounts. The offside was 10 times greater than the profit though and thats what i couldnt get my head around. I'm getting sick of IG tbh. I need to find another account. Mini dow opens $20 for every $2 mini offside too. 10 points lol.
 
While we're on the subject of forex can someone explain something to me? I was short cable a few days ago on IG Markets during a period of v low movement expecting a drop in price. The price moved 10 pips offside from entry my short and I was down by £11.60. When it moved 10 pips into profit was £1.16 in profit. Wtf is that about. What am I overlooking?
Click to expand...

Only thing I can think of, was it spot fx ? They close spot fx positions at the end of the day and reopen for the next day... so maybe some of your pip profit had already been banked ??
 
Nope it wasnt overnight. There must be something I overlooked in the t+c's of a limited risk account. I dont trade forex (since I've had a clue what I was doing lol) so I've never had a chance to notice.

Also is a 10 point spread on the dow high?
 
You must log in or register to reply here.

Similar threads

K
ROI Calculations
Replies
5
Views
3K
Rhody Trader
R
Y
What would be YOUR ROI if you traded with $500?
Replies
1
Views
1K
Deepsixitnow
D
C
What happened EUR/USD on 16 Jan?
2
Replies
21
Views
4K
mp6140
mp6140
U
Forex Startup Questions, Leverage S/L Margin etc
Replies
4
Views
3K
ha0dho
ha0dho
J
Forex Average Pip Gain / Average Pip Loss
Replies
6
Views
4K
jd1888
J
Top